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Chara is a hardworking man for his family and children. He has two children; the older child is 14 years old and the younger is 9 years old. Chara sells mobile phone credit to his co-workers at his chemical company. Now he has almost 50 partners, and the business is still growing. He wants to focus on this mobile phone credit business.

Working capital loans to Ruma agents allow them to process more mobile phone credit sales and bill payment transactions. Each Ruma agent has a balance with Ruma that allows them to sell mobile phone credit or process bill payments. When the balance is at zero, the agent cannot process any additional sales or bill payments and has to top up their balance by giving Ruma field officers cash in exchange for electronic credit.

For operational efficiency, Ruma can collect from agents only as frequently as once a day and cannot collect on the weekend when banks are closed, and cash can't be safely deposited there. As a result, agents often have lower sales on the weekend and have unfulfilled potential to make more transactions during weekdays when their balances are empty.

This working capital loan allows credit-worthy borrowers to reach their full sales potential. The loan is structured like a line of credit that the borrower uses and repays as needed during the loan term. At the end of the term, the borrower is responsible for paying back any outstanding balance so that the total amount can be returned to Kiva lenders.

Additional Information

More information about this loan

Working capital loans enable credit-worthy borrowers to reach their full sales potential. Every agent maintains a balance of electronic credit with Ruma to process transactions. But if this balance is zero and no Ruma field officers are available to replenish it, an agent may miss out on sales. Working capital loans solve this problem by serving as a line of credit that agents can repay as needed during the loan term, ensuring that they don't lose potential income. PT Ruma will progressively disburse the amount posted on Kiva based on the agent's working capital needs, ensuring that no potential income is lost. By funding this loan, you are empowering urban and rural entrepreneurs.

About PT Ruma

PT Ruma's core business is not microfinance. Accordingly, there is some additional risk for lenders as this Field Partner expands its business model to include lending. Because PT Ruma’s business model differs from standard microfinance models, it is not assigned a risk rating on Kiva. Key risks and further information about making loans to borrowers through PT Ruma can be found on the organization’s partner page.

About Indonesia

  • $4,458
    Average annual income
  • 45
    View loans »
    Indonesia Loans Fundraising
  • $4,581,075
    Funds lent in using Kiva
  • 9,924.8
    Indonesia Rupiahs (IDR) = $1 USD
Ended with Loss - Currency Exchange Loss learn more
A loan of $275 helped Chara to process more mobile phone credit sales and bill payment transactions.
92% repaid
Repayment Term
8 months (Additional Information)
Repayment Schedule
At end of term
Jun 24, 2013
Jun 27, 2013
Currency Exchange Loss:
Jan 17, 2014